In response to Saudi Arabia’s evolving e-invoicing regulations, specifically the validation rule BR-KSA-08, a new localization solution has been developed to streamline compliance for organizations operating multiple branches under a single sales organization. This rule mandates that sellers must include the commercial registration number (CRN) of the specific branch issuing the tax invoice in the edocument submitted to ZATCA, the tax authority.
In this blog post, we will delve into the newly released configuration options for SAP S/4HANA that address this requirement, ensuring your organization's invoicing processes align seamlessly with the regulatory standards.
The Challenge: Multi-Branch CRN Management
For organizations operating in the Kingdom of Saudi Arabia (KSA), adhering to the validation rule BR-KSA-08 presents a unique challenge, particularly for those with multiple branches under one sales organization. Each branch might have a distinct commercial registration number (CRN) which must be accurately reflected in tax invoices. Failing to comply can lead to regulatory issues and potential fines, making it crucial to correctly manage and populate the appropriate CRNs.
The Solution: Tailored Configuration for Compliance
To address this challenge, a robust solution has been developed for both on-premise (OP) and cloud-based SAP S/4HANA customers. This solution leverages specialized configuration paths to ensure that the correct CRN is populated at the appropriate organizational level, thereby simplifying compliance with BR-KSA-08.
CRN Management at Sales Office Level:
- Multiple Branches, Multiple CRNs:
- When multiple branches operate under a single sales organization, and these branches are defined as sales offices, each having a unique CRN, this CRN can now be maintained at the sales office level.
- Automated CRN Reference:
- During the billing process, the system will reference the CRN configured at the sales office level.
- In the absence of a specific CRN for a sales office, the system will default to using the CRN maintained at the company code level in the additional parameter CREGNO.
- Applicability:
- This configuration is only applicable for SD billing documents based edocuments.
For SAP S/4HANA On-Premise Customers:
- Configuration Path Creation:
- Navigate to the MENA --> General Settings --> Maintain Additional Fiscal Data for Sales Office customizing activity.
- You can also access the configuration directly by searching for the GLO_TVBURV view using the transaction code SM30.
For SAP S/4HANA Cloud Customers:
- New SSCUI Introduction:
- A new Self-Service Configuration UI (SSCUI) - 106929 has been introduced for cloud customers, facilitating the configuration of additional fiscal data at the sales office level.
- User Convenience:
- The SSCUI streamlines the process, allowing cloud customers to effortlessly input and manage the unique CRNs for each branch. Selection path: in the localization sub application area under the Application Area: Finance
- This ensures that the appropriate CRN is automatically populated during invoice generation, maintaining compliance with minimal manual intervention.
Important Considerations:
- Sales Office at Line Item Level:
- Sales office is at the line item level in the billing document and it is assumed that all line items of the billing document have sales office and that they are the same. Having different sales offices in the billing document or having the same sales office for a few and blank for others is not an allowed scenario as per the tax authority. This is because billing of the goods/services sold should be from one branch per billing document. Allowed scenarios are all line items should have the same sales office, or the sales office in all line items should be blank. This is a manual practice that the users need to ensure.
- CRN Determination:
- Under the above assumption, the solution reads only the first line item and checks if a CRN is maintained in this new configuration for that sales office. If not maintained, then the CRN maintained in the company code additional parameter (CREGNO) is read to be populated in the XML.
Conclusion
Compliance with Saudi Arabia's BR-KSA-08 validation rule is critical for organizations with multiple branches, and the newly released localization solution for SAP S/4HANA on-premise and cloud platforms offers a seamless way to meet this requirement. By enabling the accurate and automated population of commercial registration numbers, this solution not only simplifies compliance but also enhances operational efficiency.
Stay ahead of regulatory changes and streamline your tax invoicing processes by leveraging these new configurations and tools. For detailed guidance and implementation support, reach out to your SAP consultant or local SAP support center.
